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networks

For decades, Gaza has faced critical shortages in energy supply. Prior to the recent conflict, Gaza’s power supply could only meet 45% of estimated demand, causing rolling power cuts, crippling economic activity, and undermining water treatment, sanitation, health and social services.

Energy and water issues are closely interrelated: without increased energy supply, desalination and improved wastewater treatment are not possible. Enhancing Gaza’s electrical grid and securing sustainable long term energy are essential to unlock Gaza’s broader economic recovery, not only to power normal economic activities but to secure reliable sources of potable water.

Our projections assume, by 2040, energy demand per capita (and the energy-intensity of commercial/industrial uses) will rise to a level similar to more developed regional economies, such as present-day Turkiye, and remain stable thereafter. Total peak demand – consisting mostly of domestic use – will be over 2,500 MW (Figure 15), a five-fold increase over the pre-October 2023 level of 470 MW. Water-related energy demand will also increase, but will represent a relatively small share of total energy consumption.

Beyond the provision of interim energy supply (including provisional links to Egyptian and Israeli networks), we anticipate the implementation of Gas for Gaza, Gaza Power Plant gas convergence, and increasing capacity for the Gaza Power Plant to 560 MW. 

Longer-term, we anticipate the Palestinian entity will have an independent high-voltage grid, and integration with West Bank and regional utility networks. Gaza will develop a large-scale Solar Photovoltaic (PV) plant, exploiting extensive areas along its eastern boundary that can accommodate PV fields. Similarly, the West Bank will develop extensive solar farms in Area C. 
Gaza and the West Bank will supplement central energy production with Package Solar PV plants, including innovative local solutions like Virtual Powerplants.

As Gaza restructures its economy, Palestine will exploit the offshore Gaza Marine natural gas field, exporting to Egypt for processing.

Fig 15  |  QUARTET (2024a)

Virtual Powerplants are distributed energy hubs in neighborhoods; they use rooftop solar on new housing and commercial premises, linked to community batteries. 

Excess renewable energy is stored in the community batteries to provide energy during non-daylight hours. Each neighborhood energy node acts as an autonomous power network. 

The neighbourhood energy nodes connect to the newly established Gaza grid system through an energy management platform, creating a Gaza-wide Virtual Power Plant (VPP). This will allow communities and businesses to sell unused renewable energy back to the grid for use elsewhere or export. 

Gaza Marine is a natural gas field located approximately 36 kilometers off the coast of the Gaza Strip. Developing the field represents one of the most significant projects for the long term sustainability of the Palestinian economy, offering decades of significant revenue opportunities.

Figure 16  |  PORTLAND TRUST AND THE PALESTINIAN PRIVATE SECTOR (2016)

The rate of water abstraction from the Gaza aquifer is nearly four times the sustainable yield of 55 MCM/annum. The aquifer is highly polluted because of seawater intrusion and contamination from untreated wastewater, with only 4% considered suitable for human consumption. Wastewater collection and processing  infrastructure is severely deficient; even before October 2023 only 60% of households were connected to the sewage network, and around 90 million liters of partially treated sewage were discharged into the Mediterranean Sea each day.

PALESTINE EMERGING supports initiatives to secure sustainable long term water supply for Gaza, sufficient to meet total water demand of approximately 260 MCM/year by 2050. 

The Gaza/West Bank Link will connect utility networks in Gaza and the West Bank. Solutions will include a centralized regional-scale desalination plant (delivering 250 MCM/year) to supplement groundwater supply and position Gaza as a net exporter of water. Short-term water treatment efforts will focus on repairing existing plants in Khan Yunis, Deir Al Balah and Gaza City. 

Coordinated water management will improve the efficiency of water and waste water networks. All treatment plants will be capable of producing tertiary-quality recycled water (suitable for agriculture). Educational campaigns and local enforcement will help shut down illegal wells and boost the adoption of recycled greywater for irrigation.

Short term: PrioritiZe investment into Gas-foR-Gaza and a larger desalination plant in the south

Quartet (2024a,b)

Provision of adequate water supply for consumption is a short-term imperative in Gaza

Figure 17  |  ANERA (2023)

Figure 18  |  CSIS (2024)

Electricity prices in THE WEST BANK and Gaza are higher than Egypt and Jordan; IN THE LONG RUN, renewable energy should be considered to lower  costS and diversify ENERGY sources

Figure 19  |  Palestinian Investment Promotion Agency (2022).
Global Petrol Prices (2023).

Gaza Energy Demand and Supply Profile

Figure 20  |  Quartet (2024a)

PALESTINE EMERGING understands that digital networks are fundamental for integrating Gaza and the West Bank into global markets and achieving the necessary sectoral shifts to improve their economies. Digitized industries increasingly rely on internet connectivity, big data, 5G, and artificial intelligence to increase capital and labor productivity and obtain goods and services at lower prices, thus contributing to economic growth. 

After decades of relative technological stagnation, strategic digital networks will enable Palestine
to ‘leapfrog’ certain levels of development, similar to the way China bypassed the slow implementation of local landline communications and transitioned directly to mobile technology, or some African metropolitan areas moved beyond traditional energy networks to smart off-grid energy.  

Palestine currently does not control its own ICT infrastructure. Palestinians in the West Bank are only able to use 3G mobile services, while those in Gaza only get 2G – these are considerably slower than global standards and are more vulnerable to security attacks due to weaker encryption. Israel is upgrading from 4G to 5G. Palestinian cellular communication companies have lost up to $2B/year in potential revenue due to restrictions on frequencies and equipment alongside unauthorized competition from Israeli operators.

Digital connectivity is lifesaving. During initial periods of reconstruction, trained personnel
and medical equipment will be in critically short supply. Reliable high-speed digital bandwidth
will allow patients to access tele-health systems and link to regional and international doctors, specialists and diagnostic services to help make up deficits in local health resources. In the short term, extensive WiFi for temporary camps and housing will support stabilization efforts and increase earning potential for related populations.  

In the medium term, connectivity hubs will leverage available fiber broadband connections, bringing connectivity to critical community infrastructure like hospitals, clinics, and schools – the core of redeveloping communities. 

Digital capacities will expand to include 5G towers and mesh networks. Connectivity hubs will be replicated across Gaza and the West Bank, extending broadband coverage to commercial and personal domains.

In the long term, position Palestine as a test bed for emerging 6G-technology – similar to the way Monaco (another relatively small, spatially constrained territory) has been a testing ground for new mobile standards.

6G (sixth-generation wireless) is the successor to 5G cellular technology. 6G networks will be able to use higher frequencies than 5G networks and provide substantially higher capacity and much lower latency. The 6G technology market is expected to facilitate large improvements in the areas of imaging, presence technology and location awareness. Working in conjunction with artificial intelligence (AI), the 6G computational infrastructure will be able to identify the best place for computing to occur; this includes decisions about data storage, processing and sharing.

6G is not yet a functioning technology. While some vendors are investing in the next-generation wireless standard, industry specifications for 6G-enabled network products remain years away. 

First lab testing and pilots of 6G are expected to begin in 2028, preparing 6G for commercial release in or near 2030. Steps toward commercial readiness include the shift from 5G to 5G Advanced in 2024-2025.

WATER INDEPENDENCE
5G NETWORK
APPLICATION FOR GAZA/WEST BANK